8epubllc of Lhe hlllpplnes

SUkLML CCUk1
Manlla
ll8S1 ulvlSlCn

Gk No L223S8 Ianuary 29 197S
IC 8AkkL11C SCNS INC peLlLloner
vs
CCMAIA MAkI1IMA respondenL
vlceote Jel kosotlo v Novotto ooJ l letez fot petltlooet
kofoel uloqlosoo fot tespooJeot

LSGULkkA
eLlLlon for revlew on cettlototl of Lhe declslon of Lhe CourL of Appeals ln lLs CAC8 no
233678 whlch reverses Lhe [udgmenL of Lhe CourL of llrsL lnsLance of Manlla lncludlng
lLs resoluLlon denylng Lhe peLlLloners moLlon for reconslderaLlon of Lhe declslon
1he facLual background of Lhe case ls as follows
eLlLloner as plalnLlff flled a complalnL for collecLlon of a sum of money agalnsL hereln
respondenL alleglng LhaL durlng Lhe monLhs of CcLober and november 1941 Lhe
defendanL (now respondenL) purchased on credlL and recelved from Lhe plalnLlff (now
peLlLloner) lumber worLh 330033 and on uecember 4 1941 Lhe defendanL
respondenL agaln purchased on credlL and recelved from Lhe plalnLlffpeLlLloner lumber
worLh 43381 Lhereby lncurrlng a LoLal lndebLedness of 603436 wlLh sLlpulaLed
lnLeresL of 12 per annum plus aLLorneys fees
8espondenL as defendanL flled lLs answer denylng all Lhe maLerlal allegaLlons of Lhe
complalnL and by way of counLerclalm prayed LhaL plalnLlffpeLlLloner be ordered Lo
pay Lhe sums of 30000 as expenses of llLlgaLlon and 130090 as ALLorneys fees plus
cosLs
lalnLlffpeLlLloner havlng flled lLs answer Lo Lhe counLerclalm of defendanLrespondenL
Lhe case was heard and Lhe Lrlal courL rendered [udgmenL ln favor of Lhe plalnLlff
peLlLloner Lhe dlsposlLlve porLlon of whlch reads as follows
WPL8LlC8L [udgmenL ls hereby rendered orderlng defendanL Lo pay
Lo plalnLlff Lhe sum of 603436 wlLh legal lnLeresL Lhereon from Lhe
flllng of Lhe complalnL unLll fully pald plus aLLorneys fees ln Lhe
amounL of 30000 LogeLher wlLh Lhe cosLs
8oLh parLles appealed Lo Lhe CourL of Appeals Lhe plalnLlff lC 8A88L11C SCnS lnC
asslgnlng Lhe followlng error
1he Lower CourL erred ln holdlng LhaL Lhe moraLorlum orders and
laws condoned Lhe sLlpulaLed lnLeresL of 12 per annum on
defendanLs prewar lndebLedness and ln awardlng Lo plalnLlff only
Lhe legal lnLeresL from Lhe flllng of Lhe complalnL (pp 43 8rlef for
Lhe lalnLlffAppellanL)
and defendanL CCMARlA MA8l1lMA maklng four asslgnmenL of errors Lo wlL
l 1he Lower CourL erred ln holdlng LhaL plalnLlff had proven lLs
alleged clalms of 360033 and 43381
ll 1he Lower CourL erred ln holdlng LhaL defendanL had noL pald
plalnLlffs alleged clalm ln Lhe amounL of 360033
lll 1he Lower CourL erred ln noL holdlng LhaL Lhe complalnL sLaLes no
cause of acLlon agalnsL defendanL and LhaL Lhe alleged cause of
acLlon lf any aL all ls already barred by Lhe sLaLuLe of llmlLaLlon of
acLlons
lv 1he Lower CourL erred ln orderlng defendanL Lo pay Lo plalnLlff
Lhe sum of 603436 plus legal lnLeresL Lhereon from Lhe flllng of Lhe
complalnL unLll fully pald plus aLLorneys fees ln Lhe amounL of
30000 LogeLher wlLh Lhe cosLs (pp 12 8rlef for Lhe uefendanL
AppellanL)
1he CourL of Appeals reversed Lhe [udgmenL of Lhe Lrlal courL and ordered Lhe dlsmlssal
of Lhe case on Lhe ground LhaL dellvery of Lhe lumber by plalnLlffpeLlLloner Lo
defendanLrespondenL was noL duly proved
eLlLloners moLlon for reconslderaLlon of Lhe declslon of Lhe CourL of Appeals was
denled agaln on Lhe ground of lack of sufflclenL showlng of a valld dellvery of Lhe lumber
ln quesLlon by Lhe 8arreLLo Sons lnc Lo Lhe Companla MarlLlma
Pence Lhls peLlLlon for revlew on cettlototl
eLlLloner malnLalns LhaL
l 1he CourL of Appeals erred ln creaLlng and ralslng moto ptoplo for
Lhe flrsL Llme a new lssue LhaL of Lhe quesLlon of dellvery upon
whlch Lhe CourL of Appeals based lLs declslon reverslng Lhe [udgmenL
of Lhe Lrlal CourL
ll 1he CourL of Appeals erred ln lLs concluslon drawn from proven
facLs and has declded Lhe case ln a way noL ln accordance wlLh law
or wlLh Lhe appllcable declslons of Lhls CourL and
lll 1he CourL of Appeals erred ln LhaL lL has so far deparLed from Lhe
accepLed and usual course of [udlclal proceedlngs (pp 12 8rlef for
eLlLloner)
eLlLloner furLher asserLs LhaL Lhe case havlng been Lrled and declded by Lhe Lrlal courL
on Lhe lssue of wheLher or noL tbete wos poymeot moJe by tespooJeot compolo
Motltlmo of tbe lombet coveteJ by xbs A1 to A6 (lovolces of petltlooet) ooJ xb
8 81 to 84 (tbe coootettecelpts lssoeJ by tbe tespooJeot) lL ls alone on Lhls
lssue LhaL Lhe CourL of Appeals should have declded Lhe case and noL on Lhe lssue of
wheLher or noL Lhere was dellvery of Lhe lumber ln quesLlon
1he prlnclpal lssue Lherefore before us ls wheLher or noL Lhe CourL of Appeals declded
Lhe case on a new lssue noL ralsed ln Lhe pleadlngs before Lhe lower courLs
We rule LhaL Lhe lssue of dellvery on whlch Lhe CourL of Appeals based lLs declslon
reverslng LhaL of Lhe Lrlal courL ls no new lssue aL all lor dellvery and paymenL ln a
conLracL of sale or for LhaL maLLer ln quaslconLracLs are so lnLerrelaLed and
lnLerLwlned wlLh each oLher LhaL wlLhouL dellvery of Lhe goods Lhere ls no
correspondlng obllgaLlon Lo pay 1he Lwo complemenL each oLher 1hus by Lhe
conLracL of sale one of Lhe conLracLlng parLles obllgaLes hlmself Lo Lransfer Lhe
ownershlp of and Lo dellver a deLermlnaLe Lhlng and Lhe oLher Lo pay Lherefor a prlce
cerLaln ln money or lLs equlvalenL (ArL 1438 1sL par new Clvll Code) 1he source of
Lhls provlslon of law ls ArLlcle 1443 of Lhe old Code whlch provldes
8y Lhe conLracL of purchase and sale one of Lhe conLracLlng parLles
obllgaLes hlmself Lo dellver a deLermlnaLe Lhlng and Lhe oLher Lo pay
a cerLaln prlce Lherefor ln money or ln someLhlng represenLlng Lhe
same
lL ls clear LhaL Lhe Lwo elemenLs cannoL be dlssoclaLed for Lhe conLracL of purchase
and sale ls essenLlally a bllaLeral conLracL as lL glves rlse Lo reclprocal obllgaLlons Lo
wlL on Lhe parL of Lhe seller Lo dellver a deLermlnaLe Lhlng and on Lhe parL of Lhe
buyer Lo pay a cerLaln prlce Lherefor ln money or ln someLhlng represenLlng lL (p 1
CaplsLrano 1he Law of urchase and Sale)
1he flndlng of Lhe CourL of Appeals LhaL Lhere was no dellvery of Lhe lumber ls well
founded As succlncLly ruled by sald CourL
1haL Lhls ls baslcally an acLlon for lumber allegedly boughL recelved
and noL pald for now [usL as a seller ln order Lo recover musL prove
noL only LhaL he has sold and dellvered and has noL been pald so a
buyer ln order Lo be condemned Lo pay musL be shown Lo have
boughL recelved and noL pald Cf course lL ls correcL Lo say as
plalnLlff says LhaL even lf Lhere had been no purchase provlded Lhere
had been a dellvery lL could recover noL on Lhe sale buL on Lhe
quaslconLracL agalnsL un[usL enrlchmenL buL wheLher on sale or on
quasl conLracL Lhe vlLal elemenL ls dellvery nor should lL be sald
LhaL Lhere was no lssue aL all beLween Lhe parLles as Lo Lhe facL of
dellvery because LhaL lssue was presenL ln Lhe pleadlngs noL only as
can be seen ln par 2 of Lhe answer buL also as can be seen from Lhe
facL LhaL plalnLlff lLself on p 20 of Lhe Lsn vol l asked lLs own
wlLness 8oman Legarda So Lhls quesLlon
C Was LhaL lumber covered by LhaL lnvolce
duly recelved and acknowledged by Lhe Companla
MarlLlma?
and defendanL on Lhe oLher hand spenL a good parL of lLs proofs ln
demonsLraLlng LhaL Lhere had been no dellvery eg vol ll pp 132
134 now on Lhe vlLal polnL of dellvery lL musL be remembered LhaL
Lhe procedure beLween Lhe parLles as soughL Lo be proved by plalnLlff
lLself Lhru lLs wlLness !uanlLo C erez had been as follows
A Whenever Lhe Companla MarlLlma orders
lumber from our company Lhe Companla
MarlLlma lssues a purchase order Lo Lhe lo
8arreLLo Sons lnc When Lhls purchase order ls
recelved by Lhe lo 8arreLLo Sons lnc Lhe lo
8arreLLo Sons lnc dellvers Lhe lumber as speclfled
ln Lhe purchase order upon dellvery of Lhls
lumber Lhe lumber ls covered by lnvolce of Lhe lo
8arreLLo LogeLher wlLh Lhe purchase order of Lhe
Companla MarlLlma now when Lhe lumber ls
recelved by Lhe Companla MarlLlma Lhe Companla
MarlLlma sLamps our lnvolce for Lhe lumber
dellvered and Lhe recelvlng clerk slgns Lhe sald
lnvolce for Lhe Companla MarlLlma now afLer Lhe
lumber has been dellvered our dellvery man
brlngs back Lo our offlce and glves Lhe lnvolce Lo
me LogeLher wlLh Lhe purchase order now aL Lhe
end of each week l prepare Lhe SLaLemenL of
AccounLs Lo be senL Lhe Companla MarlLlma
Lhrough our collecLor and ln Lurn Lhe AccounLlng
ueparLmenL of Lhe Companla MarlLlma lssues as
Lhe klnds of recelpLs for Lhe lnvolces purchase
orders and sLaLemenLs of accounLs surrendered Lo
Lhem Lsn 7677 vol l
sLaLed oLherwlse flrsL Lhere was a purchase order by MarlLlma
2ndly Lhere was an lnvolce by 8arreLLo 3rdly Lhere was a dellvery
unLo MarlLlma 4Lhly Lhere was a dellvery of Lhe purchase order and
dellvery recelpL unLo MarlLlma for checklng or revlslon and slnce
MarlLlma would because of LhaL reLaln Lhe purchase orders and
dellvery recelpLs lL would lssue ln exchange lLs own counLer recelpL
of sald documenLs and 3Lhly afLer due verlflcaLlon had been made
MarlLlma would Lhen pay Lhls procedure should now be correlaLed
Lo Lhe evldence hereln presenLed now plalnLlff has here presenLed
Lwo seLs of documenLs A Lo A6 and 8 Lo 84 Lhe flrsL seL conslsLs of
a purchase order LogeLher wlLh Lhe lnvolces or dellvery recelpLs AL
Lo A6 and Lhe second seL conslsLs of counLerrecelpLs evldenclng Lhe
facL LhaL MarlLlma had recelved wlLh Lhe excepLlon of LhaL ln 84
cerLaln documenLs le purchase orders and dellvery recelpLs from
8arreLLo para su revlslon lf Lhen Lhe documenLs would be
correlaLed wlLh Lhe LesLlmonles and Lhe procedure ouLllned by
wlLness erez lL wlll resulL LhaL as Lo A Lo A6 plalnLlff occotJloq to
lt had already complled wlLh Lhe purchase order Lhe sale and
dellvery buL LhaL lL had noL submlLLed all Lhese Lo MarlLlma para su
revlslon whlle as Lo 8 Lo 84 lL had occotJloq to lt complled wlLh
purchase order (excepL as Lo 84) sale dellvery and submlsslon
para su revlslon buL Lhe same had noL been as yeL checked and
verlfled by MarlLlma Lhe quesLlon ls has Lhls proof demonsLraLed
plalnLlffs cause of acLlon pursuanL Lo Lhe very procedure by lL
ouLllned ln lLs evldence Lo have been followed beLween Lhe parLles ln
Lhe course of Lhelr commerclal LransacLlons buL how could LhaL be
when preclsely because of LhaL pracLlce lL gave unLo MarlLlma Lhe
rlghL Lo flrsL verlfy and Lhere ls no showlng LhaL had been verlfled
buL leL lL noL be here sald LhaL [usL because MarlLlma had noL yeL
verlfled plalnLlff should noL be permlLLed Lo recover for LhaL pracLlce
musL glve way Lo Lhe LruLh as plalnLlff conLends LhaL lf lL had
afLer all proved dellvery defendanL musL pay buL has plalnLlff proved
dellvery under Lhe evldence? Accordlng Lo whaL has been pald
plalnLlff had accordlng Lo lL submlLLed lLs documenLs ln 8 Lo 84 for
revlslon Lhls means Lo say LhaL lL had ln lLs possesslon and glven unLo
MarlLlma purchase orders and dellvery recelpLs buL does Lhls mean
LhaL lL had proved dellvery? Can dellvery be proved by Lhe facL LhaL
one had ln hls possesslon whaL one had belleved Lo be a dellvery
recelpL and submlLLed LhaL for verlflcaLlon wlLhouL any acLual proof
of dellvery of Lhe arLlcle? lf LhaL were Lhe case a llLlganL would be
excused from provlng Lhe elemenL mosL vlLal Lo show hls cause of
acLlon and a CourL of !usLlce musL have Lo rely on Lhe presumpLlon
LhaL [usL because one had ln hls possesslon a dellvery recelpL one
had already dellvered buL Lhe vlce of Lhls argumenL ls LhaL lL
alLogeLher parLs from Lhe basls LhaL Lhe dellvery recelpL Lhus
possessed and surrendered was a genulne dellvery recelpL
evldenclng Lhe facL LhaL buyer had lndeed recelved buL here Lhere
absoluLely ls no proof of LhaL whaL Lhls CourL has only seen ln Lhe
evldence nearesL Lo Lhe requlred proof ls Lhe sLamp of MarlLlma on A
1 Lo A6 for as Lhls CourL has sald Lhe supposed admlsslon by
defendanL wlLness narvaez LhaL Lhe lumber Lhereln annoLaLed had
been dellvered was clearly and unforLunaLely one LhaL could noL
Lo be falr Lo Lhe wlLness have been correcLly meanL Lo have by
hlm been made for he was purchaslng agenL only and could noL be
quallfled aL all Lo declare lf whaL he had auLhorlzed Lo be purchased
had been LhereafLer dellvered and Lhe wlLness had ln facL lnslsLed
agalnsL such alleged dellvery Lo osadas and wlLness had all Lhe
Llme lnslsLed LhaL only one ! Leonclo could recelve and Lhls
clarlflcaLlon ls lndlspuLably forLlfled by Lhe very evldence of plalnLlff
conslsLlng ln Lhe purchase order Lxh A whereln ls annoLaLed
noL valld unless lnvolces are recelpLed
and slgned by ! LLCnClC
whlch name ! Leonclo had been wrlLLen preclsely by sald wlLness
and Lhls musL mean LhaL Lhe slgnaLure of osadas ln A1 Lo A6 by
Lhe evldence of plalnLlff lLself has been shown Lo have been
unauLhorlzed and golng Lo Lhe sLamp of MarlLlma on A1 Lo A6 Lhls
had Lo be correlaLed Lo Lhe facL LhaL narvaez has LesLlfled LhaL
1hls ls our own sLamp buL we dld noL auLhorlze
Mr osadas Lo slgn for any lumber recelved Lsn
134 vol ll
nor has ln facL ln any parL of Lhe evldence been shown any proof as
even Lo show Lhe auLhenLlclLy of sald slgnaLure osadas or LhaL
sald osadas had acLually recelved sald lumber Lo prove aL leasL
LhaL Lhe lumber had been deposlLed ln Lhe compound of MarlLlma by
LhaL osadas for lf Lhere had been such proof ln Lhe record lf
plalnLlff had shown evldence of LhaL acLual dellvery of Lhe lumber
lnLo Lhe possesslon of MarlLlma Lhen lL would have been Lhe
obllgaLlon of Lhls CourL under Lhe law of quaslconLracLs Lo granL
8arreLLo lLs prayer for Lhe value of LhaL buL no whaL 8arreLLe has
here presenLed as wlLnesses were flrsL 8oman Legarda So manager
of 8arreLLo who admlLLed ln cross LhaL
C WlLh respecL Lo LxhlblLs A1 Lo A3 you dld
noL have any personal lnLervenLlon or parLlclpaLlon
ln Lhe preparaLlon of Lhese documenLs?
A no slr l dld noL have any parLlclpaLlon or
lnLervenLlon
C ?ou dld noL have any personal lnLervenLlon ln
Lhe alleged dellverles of Lhese number Lo Lhe
Companla MarlLlma? A no slr l dld noL have
A As a maLLer of facL you do noL know who puL
Lhese rubber sLamps here and slgned aL Lhe
boLLom of Lhese LxhlblLs A A1 Lo A 3?
C no slr l do noL know Lsn 3738 vol l
and Lhen !uanlLa C erez asslsLanL cashler of 8arreLLo who admlLLed
ln cross LhaL
C So you do noL know of your own personal
knowledge Lhe clrcumsLances or Lhe manner ln
whlch Lhese LxhlblLs A1 Lo A3 were sLamped ?ou
do noL know of your own personal knowledge?
A Well when lL comes Lo sLamplng l do noL
have any knowledge Lsn 33 vol l
under such a sLaLus of plalnLlffs own proofs how could lL be sald LhaL
plalnLlff had proved lLs case? And how would lL be correcLly lnslsLed
agalnsL Lhls CourL LhaL lL had dlsregarded Lower CourLs flndlngs
conLrary Lo Lhe exlsLlng [urlsprudence when Lhere was no lssue of
credlblllLy presenLed Lo Lhls CourL on whlch lL lndeed would have
been bound Lo rely as a rule upon Lower CourLs deLermlnaLlon buL
whaL had been before Lhls CourL was a slmple lssue of preponderance
and lL had Lo make lLs concluslons based on Lhe documenLs
Lhemselves presenLed by plalnLlff lL ls because of Lhese LhaL Lhls CourL
ls lmpelled Lo relLeraLe LhaL lL should rule as lL had ruled prevlously
for llLlgaLlons can noL be deLermlned by posslbly correcL supposlLlons
deducLlons or even presumpLlons wlLh no basls ln Lhe evldence for
Lhe LruLh musL have Lo be deLermlned by Lhe hard rules of proof (pp
17 CA 8esoluLlon daLed !anuary 8 1964)
An examlnaLlon of sald recelpLs would reveal LhaL Lhey were counLerrecelpLs lssued by
Cla MarlLlma unLo lo 8arreLLo cerLlfylng Lo Lhe facL of havlng recelved from lo
8arreLLo cerLaln sLaLemenLs para su revlslon whlch can only mean noL an admlsslon
of havlng recelved Lhe lumber buL only an admlsslon of havlng recelved cerLaln
sLaLemenLs on clalms for lumber allegedly dellvered LhaL plalnLlff has Lhe duLy Lo
prove lLs afflrmaLlve allegaLlons here of dellvery Lo and fallure of defendanL Lo pay
oLherwlse Lhe meanlng would be LhaL Lhe sendlng of a sLaLemenL of accounL would be
an evldence of Lhe admlsslon Lhereof whlch lL surely ls noL (p 6 CA ueclslon daLed
november 18 1963 p 27 8CA)
We concur ln Lhe foregolng observaLlons and flnd LhaL Lhe concluslon of Lhe CourL of
Appeals LhaL plalnLlff dld noL saLlsfacLorlly prove dellvery of Lhe lumber ln quesLlon ls ln
accordance wlLh Lhe facLs and Lhe law
WPL8LlC8L Lhe [udgmenL appealed from ls hereby afflrmed wlLhouL pronouncemenL
as Lo cosLs
SC C8uL8Lu
costto (cboltmoo) 1eebookee Mokoslot ooJ Mooz lolmo II coocot